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Hernando Today

Retail Figures Improve Last Week

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By TONY HOLT

Hernando Today

Published: January 25, 2009

NEW YORK - In the wake of more dreaded news about layoffs, liquidations and store closings, the retail industry enjoyed a bump in sales last week.

Overall weekly sales increased by 1.1 percent, based on data released by the International Council of Shopping Centers and Goldman Sachs.

The numbers are still disappointing when compared to figures from 2008. Results show a year-over-year decline of 1.8 percent.

"Sales volatility continued on a week-over-week basis, while year-over-year trends for January remained sluggish," said ICSC economist Michael P. Niemira. "Being a low-volume month with little incentive to spend will continue to make January a tough month for retailers ... (We) expect sales (to) be down 2 to 3 percent."

It was the second time in a month sales increased from the previous week. Sales figures also improved by 1.4 percent for the weekend ending Jan. 3.

"We did get a bump last week for two reasons," said ICSC spokeswoman Erin Hershkowitz. "Seasonal merchandise is discounted and stores actually push out their winter items ... There are incentives for consumers to buy them. You also saw a lot of people using their gift and discount cards a lot last week."

Sales are not expected to improve between now and the end of the summer. The retail industry is bracing itself for several more months of decline.

"We're looking at a rough spring and probably a rough summer," Hershkowitz said. "The worst of it is still yet to come. After the summer, we'll start to see some improvements."

Hershkowitz said stores that specialize in furniture, home decor and home entertainment - like recent casualties Linens N' Things and Circuit City - began sustaining losses more than two years ago after the housing market began its slide.

There is a better outlook for those chains that sell clothing, apparel and other everyday items.

"They should get through this OK," she said.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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